The Thesis

Morgan Stanley anticipates a delay in electric vehicle penetration that could boost business for internal combustion engines, to which Delphi Technologies is exposed. Even with a surge in EV adoption, Delphi is poised to profit through its power electronics, Jonas said. (See Jonas' track record here.)

APTV faces risk in the pace of market growth, in spite of its strong management team and “best in class portfolio” for autonomous vehicles, the analyst said.

“DLPH could benefit from extended life for Auto 1.0 or consolidation, while we are concerned with investor positioning at APTV, and see risk to numbers from a downturn in the cycle, competition from new entrants, and insourcing by the OEMs,” Jonas said.